CATHOLIC CHARITIES OF THE RIO GRANDE VALLEY

Reference Number: 2024-002

Assistance Listing Number: 97.024 Compliance Requirements: Allowable Costs/Cost Principles

Criteria: The Organization should have internal controls over expenditures to ensure that policies and procedures are in place to support the allowability of expenditures in accordance with 2 CFR § 200.302.

Condition and Context: The Organization provided humanitarian assistance to migrants and asylum seekers turned over by Customs and Border Protection (CBP), including meals, transportation and shelter at hotels and the Organizations Respite Center. The Organization has intake procedures in place with respect to hotel shelter expenditures. However, the intake process was not consistently applied to all participants. The Organization was not able to provide supporting documentation for 5% of the requested sample of individuals who received shelter.

Effect: The allowability of certain expenditures was not fully supported by underlying documentation. We detected an error rate of 5%, which resulted in an extrapolated questioned cost of $48,502.

Cause: There was an unprecedented influx of migrants requiring processing within a compressed timeframe, the program’s primary objective was to expedite assistance. This urgency, while addressing immediate humanitarian needs, resulted in some procedural oversights.

Questioned Costs: $48,502.

Management Response: See Corrective Action Plan.

Reference Number 2023-003 (Repeat finding, prior year finding 2022-004) Criteria: In accordance with 2 U.S. Code of Federal Regulations (CFR) 200.512, the Organization is required to submit its single audit reporting package and data collection form to the Federal Audit Clearinghouse (FAC) no later than 30 days after the date of its audited financial statements or 9 months after the fiscal year end, whichever occurs earlier. Condition and Context: The organization did not issue its single audit reporting package until August 2024.Effect: Late filing is considered in noncompliance with timely submission of financial information to the Federal Audit Clearinghouse. Cause: As described in findings 2023-001 through 2023-003, the Organization suffered operational difficulties as a result of key employee turnover and internal control deficiencies. As a result, material adjustments to the financial statements and Schedule of Expenditures of Federal Awards (SEFA) were made. In order to support the adjustments and comply with Generally Accepted Government Auditing Standards significantly more time and documentation was required to be obtained. This significantly delayed the closing and delivery of the financial reporting package. Recommendation: The Organization should implement the recommendations in findings 2023-001 through 2023-003 to ensure that future reporting requirements are complied with in a timely manner. Management Response: See Corrective Action Plan.